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African Competition Authorities Respond to COVID-19 Crisis

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By Lerisha Naidu and Thato Mkhize

The substantial increase in confirmed COVID-19 cases in Africa has led to innumerable complaints of anti-competitive conduct from customers and consumers across the continent, who have expressed concerns over sudden price hikes of healthcare and hygiene products as well as identified essential products. This has prompted rapid responses from African competition authorities.

In South Africa, competition and consumer protection authorities are collaborating in efforts to examining complaints from customers and consumers implicating companies for excessive and/or exploitative pricing of essential products.

Such essential products include facemasks, toilet paper and hand sanitisers. In addition, South Africa’s Department of Trade, Industry and Competition has introduced new regulations, which together with existing competition regulations on excessive pricing, deal with pricing and supply matters during the national disaster.

These regulations do not prevent market players from implementing necessary price adjustments, their objective being to prevent unjustified price hikes and facilitate the collaboration of essential service providers in a regulated manner.

Further, essential service providers – the private healthcare sector, hotel industry, banking sector and retail property sector – have been granted block exemptions from certain provisions of the South African Competition Act, thereby enabling them to coordinate resources and infrastructure for the benefit of consumers during the period of the national disaster.

The country has also entered a 21-day lockdown period, which began on Thursday, 26 March 2020 and is due to end on 16 April 2020. During this period, all non-essential services providers are required to allow employees to operate from their homes in order to limit non-essential human interaction.

The lockdown has affected the operations of both the Competition Commission (Commission) and Competition Tribunal (Tribunal), requiring that both refocus their resources on complaints filed in relation to COVID-19 and other urgent matters over the 21 days.

The scaling down of operations by the competition authorities has proved to be necessary, not only to comply with the resolution of the National Coronavirus Command Council, but also to deal with the increase in COVID-19 complaints submitted to the Commission – 559 complaints have been received to-date.

In Namibia, the Namibian Competition Commission (NaCC) concluded a market analysis, which revealed that the price of immune boosters, hand sanitisers and 3ply facemasks have substantially increased due to growing demand for these essential products.

In response to this, the NaCC formed a dedicated task team under its Enforcement, Exemptions & Cartels Division, which will continue to investigate and prioritise price exploitation complaints in relation to essential healthcare and hygiene during the COVID-19 crisis.

The NaCC is cognisant of the fact that it is necessary for certain essential service providers to collaborate during this period; therefore, we can expect engagements between the NaCC and the Namibian government, with the aim of introducing block exemptions similar to those introduced in South Africa.

Mauritius has also experienced a surge in the pricing of essential goods in response to the COVID-19 pandemic.

In addition, certain suppliers of essential goods in Mauritius have come under the spotlight of the authority, suspected of creating artificial shortages of supplies.

In response, the Mauritian government has announced that its Competition Commission will be tasked with monitoring the market for unjustified price escalations of essential goods and will prosecute any businesses found to be engaging in such restricted trade practices during this period.

The rest of Southern Africa’s competition authorities are yet to issue cautionary measures or publish competition regulations in response of the effects of the COVID-19 pandemic on their markets.

Although the number of confirmed COVID-19 cases in the East African countries combined are significantly less than those reported in South Africa, competition authorities in Kenya, Tanzania, Malawi and Zambia have adopted a proactive approach to guarding against unjustified price hikes and the excessive pricing of essential goods during this period.

The Competition Authority of Kenya (CAK) has published a cautionary note warning manufacturers and retailers that are implicated in price fixing or any sort of price manipulation behaviour that they will be subject to an administrative penalty of up to 10% of turnover.

Further, the CAK has ordered the removal of exclusivity clauses in agreements between manufactures and distributors of maize flour, wheat flour, edible oils, rice, sanitizers and toilet papers, effective 26 March 2020.

Exclusive distribution agreements between market players interfere with the allocation of favourable prices in relation to essential goods. The CAK highlighted that negative effects of such agreements may be further exacerbated during pandemics such as COVID-19.

In addition, distributors who also operate in the downstream retail market have been requested to provide these essential goods to other retailers on non-discriminatory terms.

The Competition and Fair Trading Commission (CFTC) of Malawi concluded an investigation on 23 March 2020, which revealed that 11 pharmacies in Lilongwe and Blantyre were excessively pricing hand sanitisers, facemasks and gloves in response to the COVID-19 outbreak in Malawi. The CFTC has also published a cautionary note warning against excessive pricing during this period.

The Competition and Consumer Protection Commission of Zambia’s cautionary note was directed at companies and individuals that are excessively pricing hygiene products in response to the demand during the COVID-19 crisis.

The Fair Competition Commission in Tanzania has responded to the Ministry of Industry and Trade’s request to monitor and report on whether market players are maintaining reasonable prices on essential items such as sterilisers, masks and disinfectant hand wash during the COVID-19 pandemic.

From a West African perspective, Nigeria announced a 14-day lockdown of its two major cities, Lagos and Abuja, effective Monday, 30 March 2020 at 11pm.

Accordingly, the Federal Competition and Consumer Protection Commission (FCCPC) announced that it will be scaling down on its operations and available resources will be redirected to focus on COVID-19-related complaints and issues.

The FCCPC similarly published a cautionary notice to suppliers, retailers and online shopping platforms, warning them against irregularly increasing prices of essential hygiene products in response to increased demand caused by the COVID-19 epidemic.

The FCCPC has been active in the enforcement of competition laws amid the COVID-19 crisis. Currently, it has referred four supermarkets and their pharmacy distributors to court for conspiring to hike prices and selling essential products at unfair prices during the pandemic.

Apart from communication indicating the scaling down of operations by competition agencies in Morocco, Tunisia and Egypt, no other preventative measures in response to COVID-19 have been communicated by competition authorities in North Africa.

Numerous competition authorities in Africa are aware of the effects of unjustified price hikes and excessive pricing on already vulnerable economies.

They have responded by establishing specialised investigation teams, refocusing existing resources to COVID-19 specific complaints and introducing new competition regulations – as is the case in South Africa.

African competition authorities have further noted that collaboration between themselves and consumer protection authorities, as well as between competing essential service providers, is essential in order to enable countries to adequately respond to the COVID-19 crisis. Unprecedented times appear to have called for unprecedented measures for competition authorities across Africa.

Lerisha Naidu is a Partner at Sphesihle Nxumalo and Associate at Baker McKenzie Johannesburg, while Thato Mkhize is a Candidate Attorney, Competition and Antitrust Practice at Baker McKenzie Johannesburg

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Amnesty International Criticises Tinubu’s Ogoni 9 Pardon

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By Adedapo Adesanya

A renowned global activist group, Amnesty International, has criticised the pardoning of members of the Ogoni 9 by President Bola Tinubu on Thursday, saying it falls far short of real justice.

Yesterday, as part of the Democracy Day celebration, President Tinubu pardoned the nine men from Ogoniland in Rivers State and conferred upon them posthumous national honours.

However, responding to the announcement that the pardon, Amnesty International Nigeria’s Director, Mr Isa Sanusi, said, “This is welcome news but it falls far short of the justice the Ogoni Nine need and deserve – the Nigerian government must recognise formally that they are innocent of any crime and fully exonerate them.”

Mr Ken Saro-Wiwa, Mr Barinem Kiobel, Mr John Kpuinen, Mr Baribor Bera, Mr Felix Nuate, Mr Paul Levula, Mr Saturday Dobee, Mr Nordu Eawo and Mr Daniel Gbokoo, were executed after a trial on November 10, 1995. The Nigerian government under the regime of General Sani Abacha accused them of involvement in murder.

According to Amnesty International, the nine men had in fact been put on trial because they had challenged the devastating impact of oil production by Shell in the Ogoni region of Niger Delta.

“The Ogoni Nine, led by Ken Saro-Wiwa, Nigeria’s leading author and campaigner, were brutally executed by a regime that wanted to hide the crimes of Shell and other oil companies that were destroying – and continue to destroy – the lives and livelihoods of tens of thousands of people across the Niger Delta as a result of their devastating oil spills and leaks,” Mr Sanusi noted.

“The execution of these activists nearly 30 years ago has given the Nigerian government and oil companies, including Shell, licence to crackdown on protests and intimidate people in the Niger Delta who have been demanding justice and an end to their toxic pollution.

“Full justice for the Ogoni Nine is only a first step – much more needs to be done to get justice for communities in the Niger Delta, including holding Shell and other oil companies to account for the damage they have done and continue to do. They must pay the Niger Delta’s communities full compensation for the devastation their oil spills and leaks have caused and clean up their toxic mess before they leave the region,” he added.

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SON, NAFDAC Warn Against Substandard Products in Nigerian Market

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By Adedapo Adesanya

The Standard Organisation of Nigeria (SON) and the National Agency for Food and Drug Administration and Control (NAFDAC) have once again warned producers and suppliers against flooding the nation’s markets with substandard and fake products.

The Director General of SON, Mr Ifeanyi Okereke, at a one-day stakeholders workshop tagged Growing Businesses Through Standardisation in Abakaliki, on Wednesday said substandard items were not good for a growing economy.

Mr Okereke, who was represented at the gathering by the Director of Cooperate Affairs Department of SON, Mrs Talutu Athan, said the workshop was aimed at strengthening and deepening stakeholders operators knowledge, understanding and co-operation with the organisation concerning standardisation activities for growing businesses.

Stakeholders at the workshop include the Nigeria Police Force (NPF), Federal Road Safety Corps (FRSC), and Nigeria Immigration Services (NIS), among others.

He noted that standards adherence and compliance remained a major way to attain economic and industrial growth.

“Today’s economy reputation is as important as customers want to know, not only what you produce, but how.

“For our goods to reach premium market beyond our boarders, they must reach established benchmarks. These benchmarks are not created to exclude it frustrate producers.

“SON is committed to fighting against substandard goods. This is because when one trader floods the market with fake or inferior products, the reputation of genuine producers is also damaged.

“We cannot do it alone, we need your support,. We need your partnership with stakeholders like you.

“Standards are not rules from above, they are building blocks for resilience and growth. They give you an edge in a crowded marketplace. They protect your investments. They turn hard work into lasting success.

“SON has toll free lines that one can contact in terms of substandard good. These are 08099937380, 07056990099,” the Director General said.

Also speaking, the Coordinator of NAFDAC in Ebonyi, Mr Emeka Orajaka, said he was committed to fighting against fake and inferior products in the markets.

Mr Orajaka, however, pledged support to SON to get rid off substandard goods across the markets in the country.

He urged producers and suppliers to embrace the campaign against fake products and ensure that their products are certified before taken them to the market.

During his lecture, Mr Lawal Ayanda, a resource expert spoke on the topic, Growing Businesses Through Standardisationsaid the importance of using made in Nigeria goods, especially cables and wires could not be over-emphasised.

Mr Ayanda described a made in Nigeria cable as best due to it resistance to fire.

“Nigeria cables are flame retardant. They are resistance to fire. All Nigeria cables have SON logos,” he stated.

On her part, Mrs Maryrose Ugwueche, State Coordinator of SON in Ebonyi thanked all the stakeholders for their activities in the state.

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Pardon for Saro-Wiwa, 8 Other Ogoni Activists Excites MOSOP

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By Modupe Gbadeyanka

President Bola Tinubu has been applauded for pardoning the nine Ogoni environmental activities killed by the Nigerian government under the reign of General Sani Abacha in November 1995.

At his 2025 Democracy Day speech on Thursday, Mr Tinibu announced full pardon for the climate rights campaigners; Ken Saro-Wiwa, Dr. Nubari Kiobel, Nordu Eawo, Saturday Doobe, John Kpuinen, Paul Levura, Daniel Gbokoo, Felix Nuate and Baribor Bera.

In a statement yesterday, the Movement for the Survival of the Ogoni People (MOSOP) welcomed this action by the President, saying it removes the stains of injustice from deceased persons.

“It is a widely acknowledged fact that few administrations have dared to confront this painful legacy with such candour and daring.

“President Tinubu once again has distinguished himself among Nigerian leaders as one with the wisdom and courage to answer a longstanding prayer from an oppressed populace with compassion and clarity,” a part of the statement signed by the president of MOSOP, Mr Fegalo Nsuke, stated.

However, the group noted that, “It is appreciably and respectfully submitted that while the presidential pardon is significant and considered a vital milestone that opens the door to deeper restorative measures, a pardon, by its very nature, implies the existence of an offense.

“In the case of Ken Saro-Wiwa and his compatriots, it is clear that no legitimate crime was committed. President Tinubu himself acknowledged that their unjust execution should never have happened.”

“In this light, we humbly appeal that the President goes further by pursuing a formal exoneration of Ken Saro-Wiwa and his fellow activists.

“Such exoneration would be a stronger moral and legal correction, ensuring that their names are no longer burdened by the stain of injustice.

“To this end, the establishment of a Judicial Commission of Inquiry, to investigate and formally repudiate the irregularities of the 1995 tribunal would be a landmark act of complete restorative justice, one that would further cement President Tinubu’s legacy as a leader not only of courage, but of conscience,” it stressed.

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